How Does the Token Distribution Mechanism Work in FET's Economic Model?

FET token distribution: 50% for public sale, 50% for ecosystem and team incentives

Fetch.ai's token distribution showcases a balanced approach between community involvement and project sustainability. The FET token allocation is strategically divided with half dedicated to public sale, ensuring widespread distribution and market participation, while the remaining 50% supports ecosystem development and incentivizes key contributors.

The comprehensive breakdown of FET's 1.15 billion fixed token supply reveals careful planning to maintain long-term value:

This distribution model demonstrates Fetch.ai's commitment to preventing token inflation through its fixed total supply mechanism. The substantial allocation for public sale (50%) indicates strong emphasis on decentralization and community governance, significantly higher than many comparable blockchain projects which typically allocate 30-40% to public distribution.

The ASI Alliance (merger of Fetch.ai, Ocean Protocol, and SingularityNET) continues to operate under the FET token, maintaining this distribution structure while building an ecosystem focused on artificial intelligence applications and agent-based technologies across various sectors including DeFi, smart mobility, and data marketplaces.

Fixed total supply of 1.15 billion FET tokens prevents inflation

The economic principle of scarcity plays a fundamental role in FET's tokenomics design. With a fixed total supply of 1.15 billion tokens, FET has implemented a deflationary model that stands in stark contrast to inflationary currencies. This capped supply means that no additional tokens can ever be created, providing investors with certainty about the token's maximum circulation.

The scarcity mechanism creates natural resistance to inflation, as demonstrated by market performance during supply shocks. When FET proposed a legal truce to Ocean Protocol to reclaim $120 million in tokens, the market responded with careful attention to this potential supply impact.

The economic effects of fixed supply can be observed through comparative analysis:

FET's token architecture follows similar principles to Bitcoin's 21 million coin cap, which has historically served as an effective hedge against inflation. This mathematical scarcity provides a foundation for long-term value preservation, particularly evident during periods of broader market inflation.

The token's anti-inflationary properties are reinforced by its staking mechanism, which temporarily removes tokens from circulation as nodes and agents must stake FET to qualify for specific operations within the network ecosystem.

FET tokens used to pay for network data request fees

Contrary to some misconceptions in the cryptocurrency community, FET tokens are not utilized to pay for network data request fees within the Far EasTone Telecommunications (FET) ecosystem. This Taiwan-based telecommunications company operates on a traditional subscription model rather than a blockchain-based token system for its network services.

FETnet offers prepaid services with clearly structured pricing that begins at NT$300 for unlimited data access. The company focuses primarily on providing telecommunications and digital application services rather than implementing token-based payment systems for network requests.

The distinction between FET tokens and FETnet services becomes evident when examining their respective operational models:

Evidence from FETnet's corporate documentation confirms their business model centers on conventional telecommunications services, including mobile connectivity, friDay Shopping, and friDay Video platforms. Their 5G service launch in 2020 enhanced these offerings with features like "Multi-angle view" and "4K resolution," all operating within traditional payment frameworks without cryptocurrency integration.

FET market cap and trading volume fluctuate over time

FET has experienced significant market capitalization and trading volume fluctuations throughout 2025, reflecting the volatile nature of cryptocurrency markets. As of November 2025, FET's market capitalization stands at $318.78 million with a 24-hour trading volume of $126.85 million, demonstrating the token's substantial daily activity.

The token's market metrics have shown noteworthy changes over different timeframes:

October 2025 was particularly tumultuous for FET, with trading volume spiking dramatically on October 10th when the price plummeted from $0.4914 to $0.3464, generating a volume of 36.59 million. This surge in trading activity continued through mid-October, with October 14th recording the highest volume at 43.16 million.

The correlation between price movements and trading volume reveals investor sentiment shifts. For instance, the price drop on October 9th from $0.5547 to $0.4913 coincided with increased volume of 12.34 million, indicating heightened selling pressure. Despite these fluctuations, FET maintained its position in the cryptocurrency rankings, demonstrating resilience in market presence despite price volatility.

FAQ

What is the FET coin?

FET is the native cryptocurrency of Fetch.ai, a decentralized machine learning network. It powers transactions and interactions within the Fetch.ai ecosystem, aiming to develop an AI-driven digital economy.

Will Fetch.ai reach $100?

While Fetch.ai's current price is low, reaching $100 is possible if it maintains strong partnerships and technological growth. Long-term predictions depend on market trends and continued innovation in AI and blockchain integration.

How high can FET go in 2025?

Based on market analysis, FET is predicted to reach a maximum price of $1.77 in 2025, with a potential price range between $0.72 and $1.77.

Does FET crypto have a future?

FET shows potential with a projected price range of $0.72 to $1.77 in 2026. While its future remains uncertain, ongoing development and market trends suggest continued relevance in the crypto space.